Arkansas Named Most Affordable State Amid Rising US Living Costs
URGENT UPDATE: In a striking new report, US News & World Report has just ranked the most and least affordable states in the US for 2025. With living costs surging nationwide, Arkansas emerges as the most affordable state, while California holds the unfortunate title of the least affordable.
Prices for groceries and housing continue to escalate, impacting families and individuals across the nation. The report reveals that while places like California and Hawaii see an alarming increase in housing costs, states such as Florida are witnessing declines due to rising real estate inventory and insurance expenses.
According to data from the US Bureau of Economic Analysis, the cost of living and housing affordability varies dramatically across the country. Some states are managing to keep costs low, benefiting residents financially amid broader economic pressures.
Here are the ten most affordable states, ranked by their overall cost of living and housing affordability:
1. Arkansas
– Cost of living ranking: 1
– Housing affordability ranking: 3
– Median household income: $62,106
– Overall best states ranking: 44th
2. Mississippi
– Cost of living ranking: 2
– Housing affordability ranking: 1
– Median household income: $59,127
– Overall best states ranking: 48th
3. West Virginia
– Cost of living ranking: 8
– Housing affordability ranking: 2
– Median household income: $60,798
– Overall best states ranking: 46th
4. South Dakota
– Cost of living ranking: 3
– Housing affordability ranking: 6
– Median household income: $76,881
– Overall best states ranking: 8th
5. Oklahoma
– Cost of living ranking: 4
– Housing affordability ranking: 7
– Median household income: $66,148
– Overall best states ranking: 42nd
6. Louisiana
– Cost of living ranking: 5
– Housing affordability ranking: 8
– Median household income: $60,986
– Overall best states ranking: last
7. Iowa
– Cost of living ranking: 7
– Housing affordability ranking: 9
– Median household income: $75,501
– Overall best states ranking: 14th
8. Alabama
– Cost of living ranking: 10
– Housing affordability ranking: 4
– Median household income: $66,659
– Overall best states ranking: 45th
9. North Dakota
– Cost of living ranking: 6
– Housing affordability ranking: 11
– Median household income: $77,871
– Overall best states ranking: 12th
10. Kentucky
– Cost of living ranking: 14
– Housing affordability ranking: 5
– Median household income: $64,526
– Overall best states ranking: 39th
Conversely, the ten least affordable states are marked by soaring costs that strain household budgets. Here’s the rundown:
41. Maryland — 42nd overall, median income: $102,905
42. New Hampshire — 44th overall, median income: $99,782
43. Colorado — 37th overall, median income: $97,113
44. Florida — 40th overall, median income: $77,735
45. New York — 45th overall, median income: $85,820
46. Washington — 47th overall, median income: $99,389
47. Massachusetts — 46th overall, median income: $104,828
48. Hawaii — 48th overall, median income: $100,745
49. New Jersey — 49th overall, median income: $104,294
50. California — 50th overall, median income: $100,149
As families face increasing financial pressure, the report emphasizes the growing divide between affordable and expensive states. This ranking serves as a crucial resource for individuals considering relocation or those seeking to understand the housing market trends.
For those impacted by these developments, the stakes are high. The affordability crisis is reshaping living conditions across the country. To explore the full report and all state rankings, visit US News & World Report.
As living expenses continue to evolve, stay tuned for more updates on how these changes will affect residents nationwide.
